Trump drops 20% fee plan for Hormuz Strait in favor of deals with Gulf states
XLE•Trump drops planned 20% fee on Hormuz cargo
U.S. President Donald Trump on Tuesday dropped the idea of charging a 20% fee on all cargo shipped through the Strait of Hormuz, and said he would instead take trade and investment deals with the Gulf states.
The change of plan comes a day after Trump proposed charging a 20% fee to guard the waterway.
Trump says Strait remains open except for Iran
Shortly after Trump made the 20% fee proposal on Monday, the U.N.'s shipping agency said it opposed fees on ships passing through maritime waterways but added it would await more details of what Trump had in mind.
In his post on Tuesday, Trump declared the Strait of Hormuz was open to all ship traffic except for Iran.
“We will therefore have a FULL Blockade, but only on Ships coming to and from Iranian ports, or carrying anything have to do with Iranian cargo,” he said.
Trump says Gulf states will make trade and investment deals
“Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States,” he said in a post on Truth Social.
Trump did not mention any commitments by Gulf states, saying “Investments will be MASSIVE but, at the same time, extraordinarily good for them, and their future.”
